Institution: Intel's increase in capital expenditure is expected to benefit chip testing company AEM

Glonghui July 24 — DBS Group analyst Amanda Tan stated in a report that Intel’s planned capacity expansion is expected to benefit chip testing company AEM’s profitability. After announcing its Q2 results, Intel raised its 2026 capital expenditure from $18 billion to over $20 billion. The analyst noted that although most of the investment will be allocated to the more expensive front-end manufacturing, Intel also expects to expand its back-end capacity, which will benefit AEM, for whom Intel is a major customer. Meanwhile, DBS Group believes Intel’s statements are a positive sign for the broader semiconductor industry. Other AEM clients may also experience similarly strong AI-driven demand.